GSTechnologies has launched a new blockchain technology - the GS Money protocol - that it intends to deploy in limited cross-border payment trials before a wider commercial roll-out.
The fintech solution provider entered into a collaboration agreement with the Singaporean blockchain payment solutions provider Wise MPay in May 2021. Under the terms of deal, Wise MPay agreed to provide the Company with software and services to facilitate its plans to develop a neobanking platform to provide next-generation digital money solutions.
GST has now tested all four of the enterprise chains provided by Wise MPay (representing four digital currencies pegged to the US Dollar, the Pound, the Euro, and the Yuan) together with implementing a mainnet upgrade on the Coalculus platform, provided by Wise MPay.
This marks the launch of the GS Money protocol, it told investors. The Group, through its GS Fintech subsidiaries, will maintain its role as the sole issuer of GS Money digital currencies.
The four digital currencies are strictly pegged to the US Dollar, the Pound, the Euro and the Yuan which will allow GST to carry out transactions immediately through blockchain ledgers, which can be used in place of wire transfers that generally take several days to complete.
‘The four enterprise chains work alongside one another to form a decentralised and highly efficient multicurrency cross border payment system for digital transactions that utilise the Coalculus blockchain ledger technology,’ the company told investors. It added that each enterprise chain's total supply will allow GST to issue up to 10 billion digital currency units.
Shares in GSTechnologies have more than doubled in value since the beginning of October 2021. Today, the stock was trading 15.14% higher at 2.51p following the announcement.
The Company said it intends to deploy GS Money shortly in limited cross-border payment trials, and then gradually roll out GSMoney for commercial operations in the coming months.
GST explained that the future roll-out of GS Money is intended to be focused on three initial use-cases: international money transfers, borderless accounts and private stablecoin.
Tone Goh, Chairman of GST, said: "I am delighted with the progress that has been made from our collaboration with Wise MPay. The completion of the testing of the four enterprise chains and the launch of the GSMoney protocol is a major milestone for the Company."
He added, “We are now focussed on the initial cross-border payment trials of GSMoney and the completion of the acquisition of Angra. I look forward to providing further updates in due course as we seek to rapidly build a blockchain enabled neobanking business."
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